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Ian Smith

International brands, growing markets

Regional NSW is a significant producer of agricultural commodities and value-added food and beverage products, due to its highly productive farmland and diverse growing conditions.

The agribusiness sector in Regional NSW employed over 99,000 people and contributed A$9 billion to the economy in 2014-15. 75% of NSW land mass is used for agriculture and 80% of all water extracted under water-sharing plans is diverted to agricultural production. The State produces 99% of national rice output, 59% of cotton and 36% of wheat.

Regional NSW supplies agricultural commodities, food and beverages to the world’s largest and growing consumer markets in Asia, the Pacific Rim and Europe. Its counter-seasonality makes it an ideal supplier of fresh produce during the winter months in the northern hemisphere.

Regional NSW has a workforce experienced in agricultural production and processing, and established agribusiness transport, distribution and logistics infrastructure.

The Australian agriculture industry is estimated to require A$109.2 billion of overseas investment by 2025 to maintain its current share of world exports. Successful investment models include joint ventures and share farming, with local producers allied to overseas participants in the supply chain.

Top 10 export destinations for Australian food and fibre (2015-16)

Chart showing Top 10 export destinations for Australian food and fibre 2015 to 2016

Chart showing Top 10 export destinations for Australian food and fibre 2015 to 2016

Source: Austrade 2017, Why Australia Benchmark Report 2017.

Established Agribusinesses

Diverse products

Regional NSW enjoys a diverse climate and geography which produces a wide range of goods:

primary crops such as nuts, berries, other horticulture, grains, cotton, oilseeds and pulses

primary livestock, particularly sheep, beef cattle, goats and poultry

aquaculture, fishing and seaweed farming

livestock product manufacturing

processed food, olive oil and dairy

beverage manufacturing, including wine, craft beer and spirits.

Top 10 Australian agricultural commodities by production value

Chart showing the top 10 Australian agricultural commodities by production value

Chart showing the top 10 Australian agricultural commodities by production value

Source: Austrade 2017, Why Australia Benchmark Report 2017.

Food safety

Australia and NSW enjoy an international reputation for high food safety standards and clean, safe foods.

The NSW Food Authority administers a fully-integrated food safety system. Sound quarantine and environmental practices used throughout NSW keep production free from pests, diseases and contaminants.

Innovation and collaboration

World-leading technology hubs and research facilities across NSW bring together industry, academia and government to commercialise new and innovative products and processes.

Australia occupies a pre-eminent place in global Agricultural Technology research, with nine of the top 100 life science universities in the world, including three in NSW.

In 2013-14, NSW agribusinesses spent over A$32 million on research and development (R&D), while food production manufacturers spent A$215 million on R&D. The NSW Government allocated over A$1.1 billion for R&D and important regional services.

The NSW Department of Primary Industries (DPI) is the largest agricultural research and development provider in Australia with 25 research stations across NSW, 650 scientific staff and a A$166 million budget. DPI has earned a place in the top 1% of global research organisations in agriculture, plant and animal sciences. DPI aims to increase the gross value of NSW agricultural production by 30% by 2020.

Investors in Regional NSW can also benefit from a number of agriculture and food innovation precincts including:

New England Agtech Cluster in Armidale is backed by the NSW Government and underpinned by the University of New England.

Orange’s Global Agri-Tech Ecosystem (GATE) offers access to DPI expertise and networks as the largest agricultural research and development provider in Australia. GATE is an end-to-end ecosystem for project development from ideation, incubation, acceleration to investor funding and commercialisation. GATE has a cornerstone partnership with SparkLabsCultiv8 linked to Asia's premier accelerator SparkLabs in South Korea.

Central Coast Food Innovation Cluster joins the University of Newcastle and key industry players to collaborate on research projects relevant to the food and beverage industry.

Processed food and dairy

Regional strengths

A sophisticated processed food industry adds value to livestock and dairy produce. NSW is Australia's second largest producer of dairy products. Its range of climatic conditions is wider than any other Australian dairy region and is a distinct advantage, guaranteeing milk supply during extreme weather.

Processed food and dairy 2014-15 GVA

Chart showing the primary processed food and dairy from 2014 to 2015 determined by GVA

Chart showing the primary processed food and dairy from 2014 to 2015 determined by GVA

Wine and beverage manufacturing

Regional strengths

Regional NSW produces some of the world’s best wines, and a variety of other alcoholic and non-alcoholic beverages.

Beverage manufacturing, including wine 2014-15 GVA

Chart showing the primary beverage manufacturing, including wine from 2014 to 2015 determined by GVA

Chart showing the primary beverage manufacturing, including wine from 2014 to 2015 determined by GVA

Sector support

NSW has strong regulatory standards. This ensures food and produce of very high quality, which is valued in Asian markets.

The NSW Government invested $1.1 billion in research and development in 2013-14 for the agriculture, biotechnology, fisheries, functional foods and genomics sectors.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is building a state-of-the-art agricultural research facility near Boorowa, NSW. The Australian Government has also invested in the Food and Agribusiness Growth Centre (Food Innovation Australia Ltd), which supports collaboration and innovation to grow the share of Australian food in the global marketplace.

Success stories

Wagga Wagga AgTech Cluster

Located on the Murrumbidgee River, Wagga Wagga has a growing reputation for international agricultural research, education and technology commercialisation based on its cluster of AgTech research centres, industry groups and businesses.

The Graham Centre for Agricultural Innovation, an Australian Centre of Excellence for innovation in grain and red meat production and value adding, is part of the hub. Established in 2005, the Graham Centre is a research alliance between the NSW Department of Primary Industries and Charles Sturt University.

It offers partnering opportunities with growers, producers, industry and researchers, supported by world-class facilities to improve the productivity, profitability and sustainability of grain and red meat value chains. It has strong international ties, particularly with Pakistan, India, China, South East Asia and the Philippines.

Other centres at the hub include the Wagga Wagga Agricultural Institute, the NSW Centre of Excellence for Southern Farming Systems and Viticulture, and the National Wine and Grape Industry Centre. Wagga Wagga’s cluster has successfully attracted established centres from other parts of Australia, such as the national AgriFutures Australia.

AgriFutures Australia works with industry to invest in research and development for a more profitable, sustainable and dynamic rural sector. Its public investments in rural research and development aim to increase knowledge and understanding fostering innovative, adaptable and valuable rural industries.

Murray River Organics

Established in 2010, Murray River Organics (MRO) is pioneering large-scale organic and sustainable processes to deliver high quality Australian food products to global consumers. MRO controls over 4,400 acres of certified organic farmland and a certified organic processing facility.

MRO has offices in Melbourne, Sydney, Adelaide, Europe, USA, Japan and China. Proprietary brands include Premium Australian Clusters, Pacific Organics, Gobble and Nutritious Foods, as well as with private label offerings.

Lowes TC

Headquartered on the NSW Central Coast for over 20 years with facilities in India and Ireland, Lowes TCnow sells over 3.5 million live plants every year internationally.

Lowes relies on the local university and technical college (TAFE NSW) for skilled research staff to develop new plant varieties for landscaping, food production and home gardening.

Central Coast transportation companies and its transport infrastructure ensures that Lowes can successfully transport plants to its international customer base.

Managing Director Simon Pettinger says "the future of our business will be run out of the Central Coast forever as far as I can see, there’d be no reason to leave. Why go to such expense when the commercial space is highly affordable, the people are highly skilled and very committed to your business and their work.”